Panic Of 1837 Essay

Andrew Jackson wanted and even gave everyone equal economic opportunity by lessening monopoly with his bank veto. However, the financial panic of 1837 was caused by two of his plans, these include pet banks and Specie Circular. People in favor of the national bank proposed a renewal bill for the Second National Bank's charter. Jackson was not necessarily opposed to central banking as much as he was to the idea of the Second National Bank. By opposing the bill, the Second Bank expired and the US would be without an official bank for many years.

While the bank ceased to exist after its charter expired, its influence and the debates surrounding it left a lasting imprint on the nation's financial system. The Bank War under President Andrew Jackson set important precedents for presidential authority, the limits of federal power over banking, and the development of a decentralized banking system. The battle over the Second National Bank also reflected broader societal and economic changes during the early 19th century, including the growth of industrialization, westward expansion, and the tension between agrarian and commercial

Andrew Jackson believed the banks to be corrupt which is the reason that he declared war on them. The First Bank’s charter ended in 1811, so with the War of 1812 and no bank, the country suffered financially and many people were in debt. That’s why in 1816, another bank was chartered and it became known as the Second Bank of the United States. Eventually, the bank grew and had supreme economic power with over 35 million dollars in capital. Most of the money was put into it by investors whereas some was put into it by the government that owned one-fifth of the bank.

The Panic of 1837 starts in New York when banks first suspend installments of specie. Taking after the breakdown of credit office, banks can no more recover coin notes in gold and silver. Alongside the issue, a gloom in England causes the cost of cotton to drop and finishes British advances to the United States. An officially insecure economy now experiences more obligations and unemployment. 09/05/1837: in light of the financial emergency, Van Buren requires an uncommon

The Bank Charter Act (1844) aimed to restore confidence in a system that had suffered 4 major financial crises since 1819. The main problem was that banks could issue paper bank notes with no limits on the account. Some banks, having over-issued notes would then collapse due to insufficient gold reserves to back the paper currency. Peel concluded that the economy could only expand if the currency was stable. The aim of the Bank Charter Act was to regulate the new rules: no new banks were allowed to issue notes, existing banks were limited to their average issue of notes and the Bank of England was given greater control over banknote issues, which was linked to bullion reserves and securities.

In 1791, the United States was in debt (due to the Revolutionary War) and each state had a different form of currency. Treasury Secretary, Alexander Hamilton urged the congress to establish the First Bank of the United States in 1791. Alexander created this bank to assist the states in paying their debt from the war and to aid the government in its financial transactions. The First Bank was the largest corporation in the United States and at the time big banking unnerved many Americans. The First Bank of the United States issued paper money to pay any debts owed to the government and taxes.

The Panic of 1819 raised concerns of Americans by enhancing their feelings on the controversies and problems of the time. During that depression, Banks throughout the country failed; mortgages were foreclosed, forcing people out of their homes and off their farms. Falling prices impaired agriculture and manufacturing, triggering widespread unemployment. Additionally, John Quincy Adams, the Secretary of State to James Monroe, claimed that both the House of Representatives and the Senate was trying to limit the powers of the President. The imbalance of power would ultimately cause a destructive prospect.

As a result, these acts placed more strains on the supply of gold and silver, resulting in a chaotic economy (458). Andrew Jackson, became largely to blame. Additionally, Andrew Jackson’s controversial opinions regarding the Second Bank of the United States led to an increase in his opponents. These anti-Jackson people claimed Jackson led like a monarch, and therefore created their own new political party (459). Jackson’s policies had yet again brought about discontent among many, and this time resulted in the creation of the Whig party.

The Panic of 1837 was a financial crisis, or market correction, driven by tentative fever. Inflation became uncontrolled after federal deposits to the Second Bank of the United States were withdrawn, based on the assumption that the government was selling land for state bank notes of questionable value. The Panic of 1837 involved Andrew Jackson administration issuing the Specie Circular, declaring that it would accept only gold and silver as payment for public land. Prices fell about 25 percent and many businesses began to fail and farmers were unable to pay their mortgages because of their decline in income and because they were losing their jobs. Martin Van Buren, who became president in March 1837, was largely blamed for the panic.

The Indian Removal Act was signed in 1830 by President Andrew Jackson to remove the Cherokee Indians from their homes and force them to settle west of the Mississippi River. The act was passed in hopes to gain agrarian land that would replenish the cotton industry which had plummeted after the Panic of 1819. Andrew Jackson believed that effectively forcing the Cherokees to become more civilized and to christianize them would be beneficial to them. Therefore, he thought the journey westward was necessary. In late 1838, the Cherokees were removed from their homes and forced into a brutal journey westward in the bitter cold.

The Panic of 1837 was one of the first major economic crisis in U.S. history. As banks started to grow across the country, the opposition to them also grew, as well as their economic difficulties. It started with President Jackson’s influential idea that the banking system diminished the power of the people and created social class division. As President Jackson strongly enforced his opposition to the banking system, he started retiring all funds that went to banks, as well as refusing its renewal and exchanging paper money for gold and silver. Although there were people who were opposed to the banking system and the value of paper money, interrupting its system led to an economic disaster that caused bankruptcies as well as increased unemployment.

The Indian Removal Act was passed during Andrew Jackson’s presidency on May 28, 1830. This authorized the president to grant land that was west of the Mississippi River to Indians that agreed to give up their homeland. They believed that the land could be more profitably farmed by non-Indians.

This caused the new banks’ failure by issuing the Specie Circular order in 1836. The government land required payment to be in gold. The National Banks of United States collapsed, this caused what we know as the Panic of 1837, that Andrew Jackson’s successor had to deal with. This was much unorganized, banks got removed, etc. The lack of national banks was one of the many speculations that contributed policies that caused the market to crash in the year of 1837.

Duane, and Roger B. Taney, until he found a secretary willing to distribute the money from the National Bank to smaller banks, Levi Woodbury. With this, local state banks had all the responsibilities and power of banking; only they could give out loans and invest. But, after irresponsible investments, the banks quickly lost the funds and began the process of the U.S. falling into the Panic of 1837. On top of the bank’s misjudgments, the value of the paper currency was falling due to Jackson’s Specie Circular, an act that made only gold and silver an acceptable currency for land. Such economic instability undermined the people’s faith in the economy and eventually lead to the Panic of 1837, a major financial

However, in 1830, the Indian removal act of 1830 was signed by Andrew Jackson and suddenly everything changed. “The Indian Removal Act in 1830 forced the relocation of more than 60,000 Native Americans to clear